Question

Q. In the international market, the price of any currency is decided by-

• A.
  The Bank for International Settlements
• B.
  Demand for goods/services provided by a country
• C.
  World Trade Organisation
• D.
  Economic potential of a country

Answer 1

The correct option is B

Demand for goods/services provided by a country

Explanation: In the international market, the price of any currency is determined by the forces of demand and supply. Demand for a currency increases if the demand for the goods and services provided by that country increases. It also increases the price of a currency. Similarly, if demand for a currency decreases, it decreases the price of it.